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Thoughts from post below
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Author: BigT Date:
6/13/2022 6:56:04 PM +3/-1
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I would think the pilots would have a lot of leverage in their negotiations as it is likely the company would be negatively affected (more so than many other companies) by fluctuations in revenue. Remember, this company was trading at something in excess of $50 a share the year prior to being taken private. The stock went down to something like $28. The purchaser then paid something like $43 a share (for a company with a downward trend in share price). Here's the rub: they borrowed a bunch of money to buy AMC. When Aaron Todd was CEO, he publically stated he wanted to keep debt at no less than two times cash flow, no more than 4 times. It went up to something like 8 times after the sale according to Moody's. Some of the bonds issued to pay for the company are now trading at $68 and yielding 23 percent. We used to refer to bonds yielding this amount as "junk". In my opinion, financial leverage coupled with uncertainty about reimbursement levels under the No Surprises Act creates a situation where the company needs to operate a max capacity. Here is the data on the bond:
6/13/2022
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16:52:30div>
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6/15/2022
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Trade
| d>
1MM+
68.500
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23.508v>
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M
|
|
_
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_
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-
|
-
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B
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D
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C
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6/13/2022
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13:39:13
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6/15/2022
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Cancel
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1MM+
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69.750
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22.731
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M
|
|
_
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v>_
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-
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-
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v>S
|
D
|
C
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r>
6/13/2022
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13:39:13
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iv>6/15/2022
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Correction
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1MM+iv>
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68.750
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22.731
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M
|
|
Z
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_iv>
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-
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-
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Siv>
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D
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C
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d>
6/13/2022
13:38:17
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6/15/2022
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Trade
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1MM+
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68.500
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23.508
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Mv>
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|
_
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_
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-
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-
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B
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D
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C
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6/13/2022
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09:22:08
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6/15/2022 >
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Trade
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1MM+
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>69.250
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23.04
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M
| <td>
_
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_
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-
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-
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S
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D
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C
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6/13/2022 >
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09:21:26
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6/15/2022
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Trade
1MM+
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69.000 >
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23.195
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M
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td>
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_
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_
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- td>
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-
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B
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D td>
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C
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6/9/2022
| d>
16:29:11
6/13/2022
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Trade
|
5000
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71.149
| d>
21.86
M
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iv>_
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_
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-
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iv>-
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B
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D
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iv>C
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6/9/2022
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16:04:26
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6/13/2022
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Trade d>
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5000
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71.149
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21.86
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|
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_
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_
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-
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-
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S
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D
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D
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>
6/9/2022
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16:04:22
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6/13/2022
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Trade
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5000v>
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71.239
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21.807
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|
|
_
|
_
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-
|
-
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S
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D
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D
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6/9/2022
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12:24:32
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6/13/2022
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Trade
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25000
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>71.330
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21.752
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N
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_
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_
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>-
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-
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B
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>D
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C
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6/9/2022 >
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12:24:32
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6/13/2022
| d>
Trade
25000
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71.330v>
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21.752
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|
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_
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_
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-
|
-
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S
|
D
|
D
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6/8/2022
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08:38:00
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6/10/2022
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Trade
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1MM+
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72.000
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21.323
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M
|
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Zv>
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_
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-
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Av>
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B
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D
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Cv>
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6/8/2022
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08:32:13v>
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6/10/2022
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Trade
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1MM+
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72.250
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21.176
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M
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Z
| <td>
_
-
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A
| <td>
S
D
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C
| </tr>
6/7/2022
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11:07:55
| <td>
6/9/2022
Trade
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1MM+div>
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72.250
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21.165
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M
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_
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_div>
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-
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-
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Sdiv>
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D
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C
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>
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Thoughts from post below
+11/-1 Ex AMCer 6/13/2022 6:31:48 PM
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